Airlines Financial Monitor (November 2011)

Released by IATA, on November 30th 2011, the key points from their report on airline financial performance in October-November 2011.

• Airline share prices down 40% this year, on market pessimism about future prospects;
• But 'backward-looking' third quarter airline EBIT of $12 billion shows a reasonable performance so far;
• Jet fuel prices were back up above $130/b, despite economic gloom, as the supply squeeze persists;
• Air freight markets are in clear decline, as business confidence falls, but air travel is still trending higher;
• Asset utiliaation has been kept high in passenger markets, so far, but has fallen sharply in freight markets;
• Also helping profitability was a stabilization of breakeven passenger load factors, by rising yields and non-fuel cost efficiencies. But the environment over the next few quarters looks much more challenging.

IATA Airlines Financial Monitor (November 2011)